Fortis Inc.
TSX : FTS

Fortis Inc.

March 15, 2007 09:30 ET

Fortis Inc. Announces Closing of Subscription Receipts Offering

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(CCNMatthews - March 15, 2007) - Not for distribution to U.S. news wire services or dissemination in the United States

Fortis Inc. (TSX:FTS) ("Fortis" or the "Corporation") announced today that it has closed its bought deal offering of Subscription Receipts (the "Offering") underwritten by a syndicate of underwriters led by CIBC World Markets Inc., Scotia Capital Inc. and TD Securities Inc. (the "Underwriters"), resulting in gross proceeds to the Corporation of $1,151,150,000.

Fortis entered into an agreement, on February 26, 2007, with the Underwriters under which they agreed to purchase from Fortis and sell to the public 38,500,000 Subscription Receipts at $26.00 each for gross proceeds to the Corporation of $1,001,000,000. The Underwriters have exercised their over-allotment option and purchased an additional 5,775,000 Subscription Receipts at a purchase price of $26.00 each for gross proceeds from the over-allotment option to the Corporation of $150,150,000.

The net proceeds of the Offering will be used, subsequent to receipt of all required approvals and satisfaction of closing conditions (the "Release Conditions"), to finance a portion of the purchase price of the previously announced acquisition of the British Columbia regulated gas distribution business of Terasen Inc. The acquisition is expected to close in mid-2007. The gross proceeds of the offering will be held by an escrow agent pending satisfaction of the Release Conditions.

The Subscription Receipts will commence trading on the Toronto Stock Exchange on March 15, 2007 under the symbol "FTS.R".

Each Subscription Receipt will entitle the holder to receive, on satisfaction of the Release Conditions and without payment of additional consideration, one common share of Fortis and a cash payment equal to the dividends declared on Fortis common shares to holders of record during the period from today to the date of issuance of the common shares in respect of the Subscription Receipts. In the event that the Release Conditions are not satisfied prior to 5:00 p.m. (Toronto time) on November 30, 2007, or if the share purchase agreement relating to the acquisition is terminated prior to such time, the holders of Subscription Receipts will be entitled to receive an amount equal to the full subscription price thereof plus their pro rata share of the interest earned or income generated on such amount.

Fortis is principally a diversified, international distribution utility holding company with assets exceeding $5.4 billion and annual revenues of approximately $1.5 billion. Fortis has holdings in regulated electric distribution utilities in Alberta, British Columbia, Newfoundland, Ontario, Prince Edward Island, Belize, Grand Cayman and the Turks and Caicos Islands. It has non-regulated generation operations in Belize, Ontario, Newfoundland, British Columbia and upper New York State. Fortis also has investments in real estate and hotels through its wholly owned non-utility subsidiary.

The Common Shares, First Preference Shares, Series C; First Preference Shares, Series E; and First Preference Shares, Series F of Fortis are traded on the Toronto Stock Exchange under the symbols FTS, FTS.PR.C; FTS.PR.E and FTS.PR.F, respectively. Fortis information can be accessed at www.fortisinc.com.

Fortis includes forward-looking statements in media releases which reflect management's expectations regarding the Corporation's future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expects", "intend" and similar expressions have been used to identify the forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to the Corporation's management. Forward-looking statements involve significant risk, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. Such risk factors or assumptions include, but are not limited to, regulation, energy prices, general economic conditions, weather, derivatives and hedging, capital resources, loss of service area, licences and permits, environment, insurance, labour relations, human resources and liquidity risk. Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to the Corporation's continuous disclosure materials filed from time to time with Canadian securities regulatory authorities. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Not for distribution to U.S. news wire services or dissemination in the United States

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